Investment inflows into Nigerian economy surged by 95 percent or $884.1 million in the second quarter on 2017 as portfolio investors, particularly, showed confidence in the country still battling economic downturn.
The National Bureau Statistics (NBS) estimates that total investment inflows into Nigeria reached $1.7923 billion in the second quarter of 2017, $884.1 million more than the figure recorded in the first quarter and indicating a growth of 95.02 percent.
Year on year inflows increased by 43.6percent from the $1,042.2 million recorded about same period on 2016. On a month on month basis, the economy attracted the largest inflows in May, reported at $616.5 million, followed by June with $612.6million and then April with $563.3 million.
“The main driver of the quarterly growth in capital importation in the second quarter was Portfolio Investments, which increased by 145.7 percent, followed by Other Investments, which grew by 95.02 percent, and then Foreign Direct Investment (FDI), which increased by 29.8 percent over the previous quarter,” the NBS said in its latest capital importation report released on Tuesday.
The NBS categorises investment inflows which it calls ‘Capital Importation’ into three main investment types, including, Foreign Direct Investment (FDI), Portfolio Investment and what it calls ‘Other Investments’, with each comprising various sub-categories.
As contained in the report, Portfolio Investment was the largest component of imported capital in the second quarter of 2017, and accounted for $770.5 million, or 43 percent of the total. This was closely followed by Other Investments, which accounted for $747.5 million, or 41.7 percent and then FDI, which accounted for $274.4 or 15.3 percent during the quarter.
A year on year comparison of the three investment types indicates that Portfolio Investments increased by 128.4 percent, from the $337.3 million recorded in second quarter of 2016. Other Investments also increased by 43.6 percent, from the $520.6 million reported in the same quarter of 2016, while FDI grew by 48.9 percent, from $184.3 million. Read more on this.